I’m a Bank EVP: If You Suspect Fraud on Your Account, This Is the First Thing You Should Do
Written by
Gabrielle Olya
Edited by
Gary Dudak
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In an increasingly digital world, it’s easier than ever to open new bank accounts, transfer money and pay bills all with the click of a button. Unfortunately, the downside is that having so much financial information available online does make it easier to fall victim to fraud. A recent GOBankingRates survey found that nearly 1 in 3 Americans has been the victim of financial fraud, including theft of debit or credit card information and hacked bank accounts.
If one of your financial accounts gets compromised, your initial instinct may be to panic, but there are actions you can and should take immediately to help resolve the issue. GOBankingRates spoke with Ben Alvarado, EVP and director of core banking at California Bank & Trust, about the steps you should take if you suspect fraud on your account, plus, how you can best protect yourself from potential fraudsters.
How To Know If Your Bank Account Has Been Compromised
If you’re not already monitoring your bank accounts regularly, you probably should be. This way, you can notice signs of fraud quickly and report them swiftly.
“The first sign that your bank account has been compromised is if you notice any transactions — including withdrawals and deposits — that you did not make, particularly payments for small amounts,” Alvarado said. “Scammers typically test the viability of an account by making small transactions in advance of larger ones.”
Some scammers may also contact you directly in an attempt to gather your bank information.
“You may receive calls from someone pretending to be a representative from your bank, who may even have your account number,” Alvarado said. “Scammers will tell you they have this information as they attempt to gain your trust and further access to your finances.”
If you receive a fishy phone call, this can also be a sign that your bank account has been compromised.
What To Do If You Suspect Fraud on Your Account
The first step you should take if you suspect fraud is to contact your bank or credit union.
“If you notice a charge or withdrawal you did not make, call your financial institution immediately for advice on what to do next,” Alvarado said. “This may result in having to freeze your debit card or account immediately if the charges are deemed fraudulent. Most banks allow you to do this via the bank’s mobile app.”
Next, notify your bank’s fraud department. “Be sure to identify the fraudulent charges and be prepared to discuss them while on the phone with the fraud department,” Alvarado said.
After filing a report with your institution, continue to monitor all of your financial accounts closely. “In the following weeks, be vigilant and monitor your credit report for any credit cards or loans taken out in your name,” Alvarado added.
‘Time Is of the Essence’
Alvarado said that it’s important to act quickly if you suspect your account has been compromised.
“The money taken from your account will usually be reimbursed to you by your bank as long as you report suspicious transactions promptly,” he said. “Time is of the essence when reporting fraud, so be sure to monitor your bank account for any unusual activity frequently.”
How To Protect Yourself From Bank Fraud
Fortunately, there are safety nets in place that can protect you and your money if your bank account has been tampered with. However, it’s always best to be proactive rather than reactive when it comes to dealing with financial scams. Alvarado offered a few best practices that can help keep your money safe.
“Being vigilant about the websites you visit and platforms you log into is a crucial way to avoid bank account fraud,” he said. “Always check the URL of the bank you’re logging into to ensure it’s the same as the one on the back of your debit card or bank statements. Hackers can set up imposter sites that look exactly like your bank’s; however, a different URL is a telltale sign.”
Alvarado also recommends regularly updating your software.
“Update the software on all devices, including laptops, computers, tablets and mobile phones,” he said. “These updates usually address the latest hacking trends and close loopholes scammers use to access your device and personal information.”
Survey methodology: GOBankingRates surveyed 1,141 Americans ages 18 and older from across the country between Aug. 2 and Aug. 6, 2023, asking 20 different questions: (1) Have you ever been the victim of identity theft, a financial scam or financial fraud?; (2) If you have been a victim of identity theft, which type of theft did you experience?; (3) If you have been a victim of a financial scam, which type of scam did you experience? (Select all that apply.); (4) If you have been a victim of financial fraud, what type of fraud did you experience? (Select all that apply.); (5) Have you ever been scammed making any of the following purchases?; (6) How much money have you lost due to identity theft, financial scams and/or financial fraud?; (7) If you lost money due to identity theft, a financial scam or financial fraud, were you reimbursed for it?; (8) What is the most common way you are contacted by scammers?; (9) How often do you change your bank account passwords?; (10) How do you keep your money safe while traveling? (Select all that apply.); (11) Where do you think is the safest place to keep your money?; (12) How much physical cash do you keep at home?; (13) If you have been scammed out of money when shopping online, how much did you lose?; (14) If you are retired, have you ever experienced these common retirement scams? (Select all that apply.); (15) Have you, or any of your family members, experienced a Social Security scam?; (16) If you have lost money from a tax scam, how much did you lose?; (17) Have you ever experienced a student loan forgiveness scam?; (18) What type of impact do you think identity theft has on its victims?; (19) What are some ways you protect yourself from identity theft today? (Select all that apply.); and (20) Do you have antivirus software installed on your computer? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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